Correlation Between OAKTRSPECLENDNEW and Afentra PLC
Can any of the company-specific risk be diversified away by investing in both OAKTRSPECLENDNEW and Afentra PLC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining OAKTRSPECLENDNEW and Afentra PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OAKTRSPECLENDNEW and Afentra PLC, you can compare the effects of market volatilities on OAKTRSPECLENDNEW and Afentra PLC and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in OAKTRSPECLENDNEW with a short position of Afentra PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of OAKTRSPECLENDNEW and Afentra PLC.
Diversification Opportunities for OAKTRSPECLENDNEW and Afentra PLC
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OAKTRSPECLENDNEW and Afentra is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding OAKTRSPECLENDNEW and Afentra PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afentra PLC and OAKTRSPECLENDNEW is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on OAKTRSPECLENDNEW are associated (or correlated) with Afentra PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afentra PLC has no effect on the direction of OAKTRSPECLENDNEW i.e., OAKTRSPECLENDNEW and Afentra PLC go up and down completely randomly.
Pair Corralation between OAKTRSPECLENDNEW and Afentra PLC
Assuming the 90 days trading horizon OAKTRSPECLENDNEW is expected to generate 0.54 times more return on investment than Afentra PLC. However, OAKTRSPECLENDNEW is 1.86 times less risky than Afentra PLC. It trades about 0.01 of its potential returns per unit of risk. Afentra PLC is currently generating about -0.14 per unit of risk. If you would invest 1,513 in OAKTRSPECLENDNEW on December 1, 2024 and sell it today you would earn a total of 3.00 from holding OAKTRSPECLENDNEW or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
OAKTRSPECLENDNEW vs. Afentra PLC
Performance |
| Timeline |
| OAKTRSPECLENDNEW |
| Afentra PLC |
OAKTRSPECLENDNEW and Afentra PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OAKTRSPECLENDNEW and Afentra PLC
The main advantage of trading using opposite OAKTRSPECLENDNEW and Afentra PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKTRSPECLENDNEW position performs unexpectedly, Afentra PLC can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Afentra PLC will offset losses from the drop in Afentra PLC's long position.| OAKTRSPECLENDNEW vs. MONEYSUPERMARKET | OAKTRSPECLENDNEW vs. AGF Management Limited | OAKTRSPECLENDNEW vs. SENECA FOODS A | OAKTRSPECLENDNEW vs. Fevertree Drinks PLC |
| Afentra PLC vs. AGF Management Limited | Afentra PLC vs. Cognizant Technology Solutions | Afentra PLC vs. ASM Pacific Technology | Afentra PLC vs. Jupiter Fund Management |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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